Stamp Duty

VI. Stamp Duty

The Stamp Duty Ordinance (Cap. 117 of the Laws of Hong Kong) imposes duty/tax on certain types of documents. Although stamp duty bears the word “stamp”, it is totally irrelevant to postage stamps. In general, the payment of stamp duty enables some specified documents to be recognized and enforceable by the Hong Kong courts. Those specified documents include:

1. Conveyance on sale/transfer of immovable property (i.e. a legal document (Assignment) which formally transferred the property ownership from one party to another);
2. Agreement for sale/transfer of residential property (including provisional agreement for sale and purchase);
3. Lease of immovable property (i.e. Tenancy Agreement/Lease); and
4. Share transfer documents for transfer of Hong Kong stock.

In other words, you will be liable to pay stamp duty in, for instance, the following scenarios (not an exhaustive list):

• sell (or purchase) a flat/building/land;
• let out (or lease) a flat/building/land; or
• sell (or purchase) shares of listed or unlisted limited company.

Generally, the buyer, the seller, and any person who uses the instrument will be equally responsible to pay the stamp duty, regardless of any agreement to the contrary made between them.

Rates of Stamp Duty

Stamp duty on document for the sale, transfer and lease of immovable property and transfer of Hong Kong stock are charged at different rates.

• On Sale or Transfer of Immovable Property in Hong Kong

(a) Ad Valorem Stamp Duty (“AVD”)

Depending on your type of property: (i) residential or (ii) non-residential, their relevant dates of execution and other circumstances, the AVD payable will differ, the applicable AVD rates are generally set out in the table below:

Note that Part 1 of Scale 1 AVD rates do not apply to an agreement /conveyance for a residential property where the purchaser is a Hong Kong permanent resident acting on his own behalf and does not own any other residential property in Hong Kong at the time of purchasing the subject property regardless of whether the purchaser is acquiring a residential property for the first time. Instead, in such circumstances, the lower rates (Scale 2) will apply.

For the prevailing applicable stamp duty rates, please click   and for illustration on applying the rates, please click .

Note that with effect from 28 February 2024, all demand-side management measures, including Special Stamp Duty and Buyer’s Stamp Duty, have been cancelled.

• On Lease of Immovable Property in Hong Kong

In Hong Kong, stamp duty is determined at rates depending on the length of the lease. Deposits indicated in the lease are not included when determining the stamp duty.

*The yearly rent/average yearly rent/total rent has to be rounded-up to the nearest $100

• On Transfer of Hong Kong Stock

Stamp duty on sale or purchase of any Hong Kong stock is charged at rates which vary with the amount or value of the consideration.

Please note that the above rates are the prevailing rates as at the date of updating this page and these rates may be subject to change.  You are encouraged to consult the Stamp Office of the Inland Revenue Department for the latest applicable rates if and as needed.

Profits Tax Liabilities on Property Dealing

Duty payers are reminded that despite the payment of stamp duty, there are also profits tax liabilities in respect of assessable profits from the buying and selling of landed properties in the course of a business in Hong Kong. For more information on Profits Tax, please go to another section - Profit Tax.